Prabowo Continues to Push for Downstreaming: Economy Must be in Our Hands in Indonesia
In recent times, there has been a growing focus on the need to encourage the development of downstream industries in Indonesia. As a diverse nation with abundant natural resources, it is essential for us to place a greater emphasis on value addition and processing within our borders. This push for hilirisasi (downstreaming) has been vigorously supported by Prabowo Subianto, a prominent political figure in Indonesia, who believes that the country’s economic growth and competitiveness rely heavily on this strategic approach.
Prabowo, who is currently serving as the Minister of Defense, has consistently advocated for the expansion of industries that add value to our raw materials. His emphasis on hilirisasi is rooted in the belief that it will strengthen Indonesia’s position in the global economy by improving productivity, creating job opportunities, and reducing our reliance on imports.
The concept of hilirisasi centers around the transformation of raw materials into finished or semi-finished products, which can then be utilized domestically or exported. By implementing this approach, we can secure a greater share of the value chain, rather than solely exporting raw materials and missing out on potential economic benefits.
One key area that Prabowo has highlighted for hilirisasi is the mining industry. Indonesia is rich in various minerals, including coal, nickel, and gold. However, a majority of these resources are exported without much processing, resulting in minimal value addition and limited job creation. By encouraging downstreaming in mining, we can establish more smelters and processing plants, thereby increasing our manufacturing capacity and generating higher revenue.
Prabowo’s advocacy for downturn industries also extends to the agricultural sector. Indonesia is one of the largest producers of palm oil, rubber, and coffee beans. However, we primarily export these commodities in their raw forms, missing out on the potential gains from processing and branding. By investing in infrastructure and technology to establish downstream industries, we can generate higher income, increase competitiveness, and elevate the global perception of Indonesian products.
Furthermore, Prabowo stressed the need for a more comprehensive approach to hilirisasi, focusing not only on manufacturing but also on research and development (R&D). By enhancing our capabilities in R&D, we can improve product innovation, develop new technologies, and create a knowledge-based economy. This will be crucial for Indonesia to stay at the forefront of global competitiveness and secure its position as a hub for innovation and production.
However, the transition towards a more hilirisasi-focused economy will not be without challenges. It requires significant investments in infrastructure, human capital development, and regulatory reforms. Moreover, there may be resistance from vested interests, such as those benefiting from the export of raw materials.
To overcome these obstacles, Prabowo stresses the importance of a strong partnership between the government, private sector, and local communities. Government policies should facilitate the creation of a conducive business environment, provide incentives for investment in downstream industries, and ensure fair and transparent regulations. The private sector must play an active role in financing, technology transfer, and knowledge sharing, while local communities can contribute by providing skilled labor and resources.
Prabowo’s continuous efforts to promote hilirisasi reflect his vision for a prosperous and self-reliant Indonesia. By embracing the concept of value addition and processing, we can unlock the immense potential of our natural resources, create a more balanced economy, and improve the well-being of our people. The time has come for us to take the reins of our economic destiny and strive towards becoming a global force in downstream industries.
